G.Wiz's demise may be golden opportunity for city

The city is limited, in one respect, in what it can do with the G.WIZ property. A requirement in the deed giving the land to the city in 1960 says it must be used for a public purpose. After studying the legal definition of those terms, City Attorney Bob Fournier said a wide range of recreational or educational activities would be allowed, even if those included private vendors, such as a gift shop or restaurant.

Published: Sunday, November 3, 2013 at 4:12 p.m.

Last Modified: Sunday, November 3, 2013 at 4:12 p.m.

SARASOTA - The misfortune of some becomes a golden opportunity for others, as city officials prepare to entertain offers for the waterfront property once occupied by the G.WIZ science museum.

The land alone has been valued at more than $9 million, and its location at 1001 Boulevard of the Arts was highlighted as a key development area in the city's pre-recession plans six years ago. Now, after years of making noise about getting the land back from the children's museum, the city last week finally authorized a committee to negotiate with potential buyers.

Sad though it is, commissioners said, the demise of the G.WIZ earlier this year was a lucky turn of events for a city in need of revenue and eager to fulfill the promise of its downtown and waterfront areas.

“It's a great opportunity,” said Commissioner Suzanne Atwell. “A lot of people are inquiring about it.”

But commissioners do not have a free hand to sell the property to just anyone, and have been reluctant to say exactly what they hope to do with that prime location. City workers are drafting a public invitation to negotiate over the property without specific guidelines, and a five-person committee directed to begin the job so far includes only Atwell, with four other members to be appointed later.

In the meantime, the former G.WIZ building sits vacant, but not quite empty. Much of the science equipment that once dazzled young visitors remains, and will have to be sold as G.WIZ liquidates its assets. Among those hoping to salvage something is former museum supporter Fritz Faulhaber. He is hoping to buy back about $140,000 in equipment from the once-popular Fab Lab, a computer-assisted manufacturing exhibit he helped create. Faulhaber's Fab Lab money, for a while, papered over G.WIZ's day-to-day financial difficulties as it teetered toward disaster last year.

How the nonprofit fell into financial disarray has never been fully explained, but Faulhaber's own experience tells of problems inside the organziation, as do some tax records filed years late.

Faulhaber was angered when he discovered money he had donated for the Fab Lab was being used for daily museum operations, hiding budget shortfalls. He was also aware that a new treasurer in 2011 turned up faulty bookkeeping, unpaid bills and false claims that G.WIZ was bringing in more money than it was spending.

Faulhaber's wife Ping resigned from the G.WIZ board in protest in September 2011, and the two important donors walked away from the nonprofit soon after.

“We gave a large amount of our hard-earned money to G.WIZ and had to see it not only not fulfilling the purpose for which it was intended, but, indeed to be wasted,” Faulhaber wrote in an email. “Thus it is a sad history we would rather forget.”

The nonprofit began losing track of money at least as early as 2008, according to records, when a set of tax payments went missing. It was only one example of growing financial confusion at G.WIZ.

The nonprofit provided little detail about the 2008 episode when reporting the incident, explaining that G.WIZ had hired an “independent company” to process its payroll and deliver tax payments. But the money G.WIZ gave the company to pay its taxes never reached the IRS.

“The majority of the funds were recovered in legal action taken by the U.S. Treasury,” G.WIZ reported. “The organization is paying the remaining balance.”

The explanation left out key details, including the amount of money involved, the name of the company it had hired and how the money went missing. Board members did not respond when contacted this week to discuss G.WIZ.

Later records show G.WIZ had other problems by 2009. The museum was bleeding money, even as city officials began making noise about moving the museum elsewhere so that it could sell the land.

G.WIZ's revenues from ticket sales and program fees were cut in half after 2008, dropping to about $765,000 a year, while the nonprofit was running a deficit of more than $700,000. The museum's assets had declined by about one-third. Important donors and board members began jumping ship later that year, and by the summer of 2012 G.WIZ had quietly closed its doors.

Now, Faulhaber hopes to save what is left of his brainchild, Fab Lab, and use it in a bigger, better science education center elsewhere. And the city has what it wanted a year ago — its prized waterfront location up for grabs.

“It's a Gold Coast” Atwell said.

City commissioners have been reluctant to limit prospects for leasing the property, and some of the ideas most recently floated included different types of museums, educational centers and tourist attractions, such as a shopping area built around a public facility. What is certain, city officials said, is the need to find a good tenant for a key bayfront location.

“I'd like to see more options, rather than less options,” said Commissioner Paul Caragiulo.

The city is limited, in one respect, in what it can do with the property. A requirement in the deed giving the land to the city in 1960 says it must be used for a public purpose. After studying the legal definition of those terms, City Attorney Bob Fournier said a wide range of recreational or educational activities would be allowed, even if those included private vendors, such as a gift shop or restaurant.

“It's OK if there is some incidental private benefit,” Fournier said. “But it has to be subordinate to the public use.”

<p><em>SARASOTA</em> - The misfortune of some becomes a golden opportunity for others, as city officials prepare to entertain offers for the waterfront property once occupied by the G.WIZ science museum.</p><p>The land alone has been valued at more than $9 million, and its location at 1001 Boulevard of the Arts was highlighted as a key development area in the city's pre-recession plans six years ago. Now, after years of making noise about getting the land back from the children's museum, the city last week finally authorized a committee to negotiate with potential buyers. </p><p>Sad though it is, commissioners said, the demise of the G.WIZ earlier this year was a lucky turn of events for a city in need of revenue and eager to fulfill the promise of its downtown and waterfront areas.</p><p>“It's a great opportunity,” said Commissioner Suzanne Atwell. “A lot of people are inquiring about it.”</p><p>But commissioners do not have a free hand to sell the property to just anyone, and have been reluctant to say exactly what they hope to do with that prime location. City workers are drafting a public invitation to negotiate over the property without specific guidelines, and a five-person committee directed to begin the job so far includes only Atwell, with four other members to be appointed later.</p><p>In the meantime, the former G.WIZ building sits vacant, but not quite empty. Much of the science equipment that once dazzled young visitors remains, and will have to be sold as G.WIZ liquidates its assets. Among those hoping to salvage something is former museum supporter Fritz Faulhaber. He is hoping to buy back about $140,000 in equipment from the once-popular Fab Lab, a computer-assisted manufacturing exhibit he helped create. Faulhaber's Fab Lab money, for a while, papered over G.WIZ's day-to-day financial difficulties as it teetered toward disaster last year. </p><p>How the nonprofit fell into financial disarray has never been fully explained, but Faulhaber's own experience tells of problems inside the organziation, as do some tax records filed years late. </p><p>Faulhaber was angered when he discovered money he had donated for the Fab Lab was being used for daily museum operations, hiding budget shortfalls. He was also aware that a new treasurer in 2011 turned up faulty bookkeeping, unpaid bills and false claims that G.WIZ was bringing in more money than it was spending.</p><p> Faulhaber's wife Ping resigned from the G.WIZ board in protest in September 2011, and the two important donors walked away from the nonprofit soon after.</p><p>“We gave a large amount of our hard-earned money to G.WIZ and had to see it not only not fulfilling the purpose for which it was intended, but, indeed to be wasted,” Faulhaber wrote in an email. “Thus it is a sad history we would rather forget.”</p><p>The nonprofit began losing track of money at least as early as 2008, according to records, when a set of tax payments went missing. It was only one example of growing financial confusion at G.WIZ.</p><p>The nonprofit provided little detail about the 2008 episode when reporting the incident, explaining that G.WIZ had hired an “independent company” to process its payroll and deliver tax payments. But the money G.WIZ gave the company to pay its taxes never reached the IRS.</p><p>“The majority of the funds were recovered in legal action taken by the U.S. Treasury,” G.WIZ reported. “The organization is paying the remaining balance.”</p><p>The explanation left out key details, including the amount of money involved, the name of the company it had hired and how the money went missing. Board members did not respond when contacted this week to discuss G.WIZ.</p><p>Later records show G.WIZ had other problems by 2009. The museum was bleeding money, even as city officials began making noise about moving the museum elsewhere so that it could sell the land. </p><p>G.WIZ's revenues from ticket sales and program fees were cut in half after 2008, dropping to about $765,000 a year, while the nonprofit was running a deficit of more than $700,000. The museum's assets had declined by about one-third. Important donors and board members began jumping ship later that year, and by the summer of 2012 G.WIZ had quietly closed its doors. </p><p>Now, Faulhaber hopes to save what is left of his brainchild, Fab Lab, and use it in a bigger, better science education center elsewhere. And the city has what it wanted a year ago — its prized waterfront location up for grabs.</p><p>“It's a Gold Coast” Atwell said.</p><p>City commissioners have been reluctant to limit prospects for leasing the property, and some of the ideas most recently floated included different types of museums, educational centers and tourist attractions, such as a shopping area built around a public facility. What is certain, city officials said, is the need to find a good tenant for a key bayfront location.</p><p>“I'd like to see more options, rather than less options,” said Commissioner Paul Caragiulo. </p><p>The city is limited, in one respect, in what it can do with the property. A requirement in the deed giving the land to the city in 1960 says it must be used for a public purpose. After studying the legal definition of those terms, City Attorney Bob Fournier said a wide range of recreational or educational activities would be allowed, even if those included private vendors, such as a gift shop or restaurant. </p><p>“It's OK if there is some incidental private benefit,” Fournier said. “But it has to be subordinate to the public use.”</p><p>㜲</p>